FIRST-HALF 2018 RESULTS. DOMINIQUE LOUIS Chairman and Chief Executive Officer PHILIPPE CHEVALLIER CFO & Deputy CEO

Transcription

1 DOMINIQUE LOUIS Chairman and Chief Executive Officer PHILIPPE CHEVALLIER CFO & Deputy CEO SEPTEMBER 2018

2 Disclaimer This presentation includes forward-looking statements, which, by their very nature, involve inherent risks and uncertainties. These statements concern future financial performance and other risks relating to Assystem's markets as well as its results, levels of business, performance, and objectives. Actual results could therefore differ significantly from those currently anticipated. Assystem considers that such statements are based on reasonable assumptions, but cannot and does not give any assurance that future results, levels of business, performance or achievements will be consistent with those statements. The above-mentioned risks include: trends in Assystem's markets; increased competition in these markets; the profitability of Assystem's expansion strategy; challenges to or loss of its intellectual property rights; its ability to establish and maintain strategic relationships in its major businesses; its ability to develop and take advantage of new software and services; and the effect of future acquisitions and investments on the Assystem share price. Due to the uncertain nature of these forward-looking statements, the reader is advised that they do not constitute a guarantee by the Company or by any other person as to the achievement of Assystem's objectives and projects. Neither the Company nor any other person assumes any liability for the accuracy or completeness of these statements, which apply solely to this presentation. 2

3 CONTENTS PART 1 Significant events of first-half 2018 PART 2 First-half 2018 financial performance PART 3 Outlook for APPENDICES 19

4 PART 1 SIGNIFICANT EVENTS OF FIRST-HALF 2018

5 Reminder of the Group s configuration ENERGY & INFRASTRUCTURE 100% FRAMATOME 5% STAFFING 100% ASSYSTEM TECHNOLOGIES GROUPE 38.2% (1) (1) The portion of equity and quasi-equity held by Assystemin Assystem Technologies Groupe 5

6 Significant events of first-half 2018 (1/2) Additional investment in ATG and creation of Assystem Care Assystem Technologies Groupe (ATG) Assystem makes an additional investment in ATG s equity and quasi-equity in order to have a stake in the value creation resulting from the acquisition of SQS (1) Assystem E&I: Creation of Assystem Care Since the acquisition of BQG in late 2017, the Group s Life Sciences activities have been combined and restructured into a holding company and three operating subsidiaries (Assystem Care France, Assystem Care Belgium and Assystem Care Switzerland) (1) Assystem s revolving credit facility set up in September 2017 was increased by 30m to a total 150m in order to maintain its level of available cash 6

7 FIRST-HALF 2018 RESULTS Significant events of first-half 2018 (2/2) International developments Major contract won with K.A.CARE in Saudi Arabia International bid won thanks to the Group s long-standing expertise and local knowledge Site characterisation and impact studies over an 18-month period in preparation for Saudi Arabia s nuclear plant programme Joint venture set up with Nama Development Enterprises in the United Arab Emirates Cementing Assystem s positioning over the long term in the UAE s nuclear energy programme and increasing revenue generated with ENEC by expanding the service offering Creation of a joint venture with AXISCADES in India (AEAC) Proposing engineering services in the Energy, Building, Infrastructure and Nuclear sectors to Indian and international OEMs Strengthening the cost efficiency of Assystem s European and Middle Eastern engineering centres 7

8 PART 2 FIRST-HALF 2018 FINANCIAL PERFORMANCE

9 Key figures for first-half 2018 Revenue 216.1m + 5.7% Free cash flow for the past 12 months (1) EBITA (including equity-accounted investees) 25.4m 6.2% of revenue 9.2m 4.3% of revenue % (1) Free cash flow for H free cash flow generated by fully consolidated companies in H

10 Revenue (in m) (2.0) Total growth: + 5.7% +5.7% Like-for-like growth excl. Radicon and Envy: + 3.8% (1) Impact of Radicon and Envy on like-for-like growth: - 3.0% Impact of changes in scope of consolidation: + 7.1% Currency effect: - 2.2% H H E&I Staffing Other (1) Including an estimated 0.8% negative calendar effect (lower number of business days) 10

11 EBITA and EBITA margin (in m) 12.0 (3.6) 5.9% (0.2) % H E&I Staffing Holding H company and Other 11

12 Revenue and operating profit before non-recurring items (EBITA) (1/2) ENERGY & INFRASTRUCTURE (E&I) Revenue (in m) EBITA (in m and % of revenue) 13.9 Nuclear % (2) m m +7.7% (1) -7.3% (3) Energy Transition & Infrastructures 7.9% 5.4% H H Very strong momentum in the Nuclear sector ET&I adversely impacted by Radicon, Envy (excl. Nuclear) and conventional energy activities in France High basis of comparison with 2017 Impacts of one-off communication costs and dissynergies arising from changes in the scope of consolidation Temporary disruption of the Life Sciences business (1) Total growth (breaking down as 0.5% like-for-like growth, an 8.4% positive impact from changes in scope of consolidation and a 1.2% negative currency effect) (2) 13.3% like-for-like growth (3) Negative like-for-like growth of 17.4% 12

13 Revenue and operating profit before non-recurring items (EBITA) (2/2) STAFFING Revenue (in m) EBITA (in m and % of revenue) Oil & Gas % % Industry 2.5% 22.3m -8.2% (1) m % H H Significant growth for Industry Strong currency effect during the period (USD and USD-pegged currencies) Weak margin in H1 2018, but expected to increase significantly in H2 (1) 1.5% growth at constant exchange rates 13

14 From EBITA to consolidated profit for the period (in m) 5.1 (4.1) (3.1) (0.3) 7.1 EBITA Net nonrecurring income Contribution of ATG (1) excl. impact of acquisition costs Impact of ATG acquisition costs (2) Income tax expense Other (3) Consolidated profit for the period (1) AssystemTechnologies Groupe (2) Mainly relating to the acquisition of SQS (3) Breaking down as 0.2m in net financial expense and a 0.1m loss from discontinued operations 14

15 Movements in net (cash)/debt (in m) (23.9) (5.4) Net cash at 31 Dec Free cash flow Additional investment in Assystem Technologies Groupe (1) Dividends paid to shareholders of Assystem SA Other movements (2) Net debt at 30 June 2018 (1) Corresponding to an investment in ATG s equity and quasi-equity in order to participate in financing the acquisition of SQS (2) Including 7.2 m in tax on the capital gain arising on the transfer of control of GPS 15

16 PART 3 OUTLOOK FOR FULL-YEAR 2018

17 BUSINESS OUTLOOK FOR H Energy & Infrastructure (E&I) Continued growth momentum in the Nuclear sector Envy + Radicon expected to have a 4% positive impact on total consolidated revenue in H2 thanks to business developments (vs a 3.6% negative impact in H1 2018) Positive calendar effect: + 2 days in H2 vs - 1 day in H1 Staffing Target to achieve at least stable revenue for full-year

18 Targets for full-year 2018 Consolidated revenue growth of at least 10% i.e. at least +15% in H EBITA at least the same as in 2017 (1) i.e. up significantly in H vs H Free cash flow representing more than 5% of revenue (1) Full-year 2017 EBITA = 26.0m 18

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20 APPENDICES

21 Condensed income statement in millions H H Revenue Operating profit before non-recurring items (EBITA) (1) EBITA margin 5.9% 4.3% Non-recurring income and expenses Operating profit Profit contribution of Assystem Technologies Groupe (2) Net financial expense (1.8) (0.2) Income tax expense (4.1) (3.1) Profit from continuing operations Profit/(loss) from discontinued operations 15.6 (0.1) (3) Consolidated profit for the period (4) (1) Operating profit before non-recurring items (EBITA) including share of profit of equity-accounted investees ( 0.2m in H and 0.6m in H1 2018) (2) Breaking down as (i) a negative 2.9m corresponding to the Group s share of ATG s loss for the period (including 4.1m for the Group s share of acquisition costs incurred in H1 2018) and (ii) 3.9m in proceeds from convertible bonds (3) Residual costs incurred for the transfer of control of GPS (4) Including profit for the period attributable to non-controlling interests: 0.4m in H and a nil amount in H Profit for the period attributable to owners of the parent therefore totalled 21.4m in H and 7.1m in H

22 Condensed balance sheet at 30 June 2018 Non-current assets (1) : 105.0m O/w goodwill: 83.4m Equity: 377.7m ATG shares and conv. bonds: 189.8m Framatome shares: 124.3m Net WCR (2) : 53.3m NC liabilities: 41.0m Net debt: 53.7m BALANCE SHEET TOTAL: 472.4m (1) Excluding ATG shares and convertible bonds and Framatome shares (2) Including 18.3m in research and CICE tax credits 22

23 Assystem s ownership structure at 31 August 2018 Euronext Compartment B FR Mid-caps deferred settlement service (SRD) Indices: CAC All-Shares CAC Industrials CAC Support Services Next 150 Free float (2) 34.79% HDL Development (1) 61.34% Market capitalisation: 435.6m (share price: 27.80) Number of shares: 15,668,216 o/w held in treasury: 606,011 Treasury shares 3.87% (1) HDL Development is a holding company controlled by Dominique Louis (Assystem s Chairman and Chief Executive Officer), notably through HDL, which itself holds 0.22% of Assystem s capital (2) Including 0.22% held by HDL 23